A Framework for Developing Earned Value Management

Systems (EVMS) Policy for Information Technology (IT)

Projects

Prepared by the Federal CIO Council

December 5, 2005
 A Framework for Developing Earned Value Management Systems (EVMS) Policy
for Information Technology (IT) Projects – December 5, 2005

Table of Contents

1. Background...........................................................................................................................................................................3
1.1. Document Purpose.....................................................................................................................................................3
1.2. Intended Audience......................................................................................................................................................3

2. Legislation, Policies and Standards ................................................................................................................................4

2.1. Legislation...................................................................................................................................................................4
2.2. Policies.........................................................................................................................................................................4
2.3. Standards.....................................................................................................................................................................4

3. Scope .......................................................................................................................................................................................5

4. Processes ................................................................................................................................................................................6
4.1. Organization, Planning, Scheduling and Budgeting............................................................................................6
4.1.1. Program Planning.................................................................................................................................................. 6
4.1.2. Integrated Baseline Reviews ............................................................................................................................... 7
4.2. Monitoring, Analysis and Reporting.......................................................................................................................7
4.2.1. EVM Data Collection........................................................................................................................................... 7
4.2.2. Reporting and Analysis of EVMS Data ............................................................................................................ 7
4.2.3. Integration with Portfolio Management ............................................................................................................ 7
4.2.4 Training................................................................................................................................................................... 8
4.3. Data Management and Control...............................................................................................................................8
4.3.1. Baseline Change Control Process....................................................................................................................... 8
4.3.2. Corrective Action Plans ....................................................................................................................................... 8
4.3.3. Compliance Reviews ............................................................................................................................................ 8
4.3.4. Surveillance Reviews ........................................................................................................................................... 9
4.4. Templates and Tools..................................................................................................................................................9
4.5. Integration of EVMS with Acquisition Processes.................................................................................................9

5. Stakeholders/Roles and Responsibilities.....................................................................................................................10

6. Glossary...............................................................................................................................................................................11

7. Appendix A: ANSI/EIA 748 Guidelines......................................................................................................................12

8. Appendix B: FAR Modifications on EVMS ...............................................................................................................15

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1. Background
Earned Value Management (EVM) is a project management control tool allowing visibility into
technical, cost and schedule planning, performance and progress for major IT projects. EVM not
only encourages contractors to use effective internal cost and schedule management control
systems, but also provides the manager with timely and consistent cost, schedule and progress
data. The implementation of an Earned Value Management System (EVMS) ensures that cost,
schedule, and technical aspects of the contract are truly integrated and estimated, and actual
progress of the project can be identified. OMB requires the use of an EVMS compliant with the
guidelines in ANSI/EIA Standard 748 for all major IT investments with development work.

1.1. Document Purpose

The purpose of this document is to demonstrate a model EVMS framework for the development
of agency EVM policy. It is not intended to be all- inclusive, but rather to provide key
components as determined through review of existing EVM policies, to assist agencies in
developing their EVM policies as required by OMB Memorandum M-05-23. Per OMB
Memorandum M-05-23, agencies are to develop such policies no later than December 31, 2005.

1.2. Intended Audience

The intended audience for this document is agency staff responsible for development of agency
EVM policy.

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2. Legislation, Policies and Standards

The agency EVM policy should provide references to legislation, policy and standards pertaining
to EVM. Agency EVM policy should consider the following:

2.1. Legislation
Relevant legislation includes:
• Government Performance and Results Act of 1993 – Mandates the use of performance
metrics.
• Federal Acquisition Streamlining Act of 1994 – Requires agency heads to achieve, on
average, 90% of the cost and schedule goals established for major and non- major
acquisition programs of the agency without reducing the performance or capabilities of
the items being acquired.
• Clinger-Cohen Act of 1996 – Requires establishment of the processes for executive
agencies to analyze, track, and evaluate the risks and results of major investments in IT
and requires reporting on the net program performance benefits achieved by agencies.

2.2. Policies
Relevant policy inc ludes:
• OMB Circular A-11 (Part 7, Planning, Budgeting, Acquisition & Management of Capital
Asset) – Outlines a systematic process for program management, which includes
integration of program scope, schedule, and cost objective; requires use of earned value
techniques for performance measurement during execution of the program; specifically
identifies ANSI/EIA Standard 748.
• OMB Memorandum M-04-24, “Expanded Electronic Government (E-Gov) President’s
Management Agenda (PMA) Scorecard Cost, Schedule and Performance Standards for
Success – Provides additional information on the President’s Management Agenda
(PMA) Expanded Electronic Government initiative and the standard for success
concerning cost, schedule and performance goals.
• OMB Memorandum M-05-23, “Improving Information Technology (IT) Project Planning
and Execution” – Provides guidance to assist agencies in monitoring and improving
project planning and execution and fully implementing EVMS for major IT projects.

2.3. Standards
Relevant standards include:
• American National Standards Institute/Electronic Industries Association (ANSI/EIA)
Earned Value Management System (EVMS) Standard 748-1998 – Industry process for
use of EVMS including integration of program scope, schedule and cost objectives,
establishment of a baseline plan for accomplishment of program objectives, and use of
earned value techniques for performance measurement during the execution of a
program.

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3. Scope
Agency EVM policy should define the criteria to determine projects for which EVMS applies.
Criteria should be consistent with OMB Circular A-11 and other relevant legislation, policies,
and standards as outlined above.
OMB Circular A-11 defines a “major acquisition/investment” to mean a system or project
requiring special management attention because of its importance to the mission or function of
the agency, a component of the agency or another organization; is for financial management and
obligates more than $500,000 annually; has significant program or policy implications; has high
executive visibility; has high development, operating, or maintenance costs; or is defined as
major by the agency’s capital planning and investment control process. OMB may work with the
agency to declare other investments as major investments. Agencies may add additional criteria
for defining projects as “major”.
Per OMB Circular A-11, EVMS is required for those parts of the major investment where
developmental effort is required. EVMS is to be applied to both Government and contractor
efforts. For operational/steady state systems, an operational analysis system as discussed in
Phase IV of the Capital Programming Guide is required. A performance-based service
contract/agreement with a defined quality assurance plan should be the basis for monitoring
contractor or in- house performance of this phase.
Furthermore, agencies may identify additional criteria for defining projects to which EVMS is
required. Such a classification can be based on criteria including:
• Level of management visibility
• Level of development/modernization/enhancement (DME) funding
• Duration of development phase
• Level of risk

If compliance with EVMS guidelines is not required, consider whether tailored products and
processes that are EVMS-based should be employed. With tailoring, the objective remains
effective management control of contract performance risk and to obtain early indicators of
expected cost, performance, and schedule results.

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4. Processes
The agency EVM policy should provide details regarding agency processes to implement and
use EVM to plan and manage IT investments. The policy should give consideration to both
federal staff and contractor resources.
ANSI/EIA Standard 748 provides an overall structure for an integrated
cost/schedule/performance measurement system. The structure consists of 32 criteria organized
into five high- level categories:
• Organization,
• Planning, Scheduling and Budgeting,
• Accounting Considerations,
• Analysis and Management Reports, and
• Revisions and Data Maintenance.
Agency EVM policy should be consistent with these categories and criteria. Please refer to
Appendix A for the full list of ANSI/EIA Standard 748 criteria. The following sections provide a
framework for agencies to use in developing the processes for the implementation and use of
EVM. The sections are aligned to the five high- level categories outlined in ANSI/EIA Standard
748.

4.1. Organization, Planning, Scheduling and Budgeting

This section addresses the categories of the ANSI/EIA Standard 748, ‘Organization’ and
‘Planning, Scheduling and Budgeting’.

4.1.1. Program Planning

Agency EVM policy should provide guidelines and schedule for the initial project planning
using an EVMS. The agency EVM policy should consider the development of the following:
• Work Breakdown Structure (WBS) – a task oriented detailed breakdown, which
defines the work packages and tasks at a level above that defined in the networks and
schedules.
• Organizational Breakdown Structure (OBS) – a functionally oriented division of the
contractor’s organization established to perform the work on a specific contract.
• Responsibility Assignment Matrix (RAM) – correlates the work required by a Contract
Work Breakdown Structure element to the functional organization responsible for
accomplishing the assigned tasks.
• Performance Measurement Baseline (PMB) – the time-phased budget plan against
which project performance is measured. Assessment of the PMB is conducted through
Integrated Baseline Reviews (IBRs).
Agency EVM policy should indicate a timeline for development of the above items, roles and
responsibilities of resources involved (e.g., content developers, reviewers), and templates and
tools utilized.

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4.1.2. Integrated Baseline Reviews

Per OMB Memorandum M-05-23, agency EVM policy should address the use of Integrated
Baseline Reviews (IBR) to finalize the cost, schedule and performance goals. An IBR is an
assessment of the PMB to ensure the adequacy, accuracy and risks of the PMB. The agency
EVM policy should include a schedule, process and participants for conducting IBRs.

4.2. Monitoring, Analysis and Reporting

This section addresses the ANSI/EIA Standard 748 categories, ‘Accounting Considerations’ and
‘Analysis and Management Reports’.

4.2.1. EVM Data Collection

The agency EVM policy should outline a systematic way to collect data necessary to support
EVM. The agency EVM policy should describe any templates, tools, and systems utilized and
additionally provide controls to ensure the data is collected consistently and reliably to inform
management decisions. The agency EVM policy should detail any systems used to track data and
the process for tracking actual costs at the control account level.
The agency EVM policy should additionally address collection of data from both government
and contractor resources.

4.2.2. Reporting and Analysis of EVMS Data

The agency EVM policy should indicate the process and procedures used to review the EVM
data collected to support the identification of performance issues. Furthermore, the agency policy
should address the process for resolution of performance issues – and include details regarding
escalation procedures.
Specifically, agency EVM policy should outline:
• Standard reports (layouts, templates, schedules)
• Exception reporting (e.g., Variance Analysis Report required if cost/schedule variance
exceeds an acceptable threshold)
• Contractor reporting requirements (including reporting layouts and templates)
• Review schedule (to include review purpose, inputs/outputs, activities, and participants)
• Escalation procedures if acceptable thresholds are exceeded (e.g., CIO notified if
cost/schedule varia nce exceeds X%)
• Requirements for development of Corrective Action Plans (See Section 4.8.2)

4.2.3. Integration with Portfolio Management

In accordance with OMB Memorandum M-04-24, agency EVM policy should address the use of
EVMS data and analysis to make manageme nt and IT portfolio management and Capital
Planning and Investment Control (CPIC) decisions (i.e., how and when is performance data
received by the agency; who reviews it; is further analysis done; does the agency use a tool to

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manage the data reported; how is performance information reported to senior management; and
what they do with the information).

4.2.4 Training
Agency EVM policy should outline guidelines on training for program office staff and contractor
personnel on the analysis of generated earned value data. Suggestions for training include:
formal training classes; contractor-sponsored training; on-the-job training; and training materials
available on performance management websites.

4.3. Data Management and Control

This section addresses the category consistent with ANSI/EIA Standard 748, ‘Revisions and
Data Maintenance’.

4.3.1. Baseline Change Control Process

Agency EVM policy should provide details regarding the baseline change control process and
baseline control guidelines. The policy should include processes to document revisions and
authorize changes.

4.3.2. Corrective Action Plans

Major investments with a variance outside of established thresholds for cost or schedule should
develop Corrective Action Plans. Such plans provide strategies to correct deficiencies and to
improve investment performance. The agency EVM policy should outline required components
of Corrective Action Plans as well as agency resources responsibilities for the development and
review of Corrective Action Plans.

4.3.3. Compliance Reviews

Per OMB Memorandum M-05-23, full implementation of an EVMS for IT projects includes
compliance reviews of agency and contractor EVM systems. The agency EVM policy should
address the compliance review process, including at a minimum:
• Schedule and criteria for conducting compliance reviews
• Required documentation
• Activities to be performed
• Participants – with specifics regarding roles and responsibilities
• Process for corrective actions (including impacts to the acquisitions process)
• Reporting of findings
• Criteria for success

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4.3.4. Surveillance Reviews

Per OMB Memorandum M-05-23, agencies are required to periodically review the agency or
contractor to ensure it continues to meet ANSI/EIA Standard 748. Agency EVM policy should
address the surveillance review process, including at minimum:
• Schedule and criteria for conducting surveillance reviews
• Required documentation
• Activities to be performed
• Participants – with specifics regarding roles and responsibilities
• Impacts to acquisition process (i.e., contracts considerations)
• Reporting of findings
• Criteria for success

4.4. Templates and Tools

Templates and tools are not a substitute for the establishment and adherence to EVMS processes
but can be used to assist in the management and reporting of EVMS data. The agency EVM
policy should address the development and review of any templates and specify all agency tools
used to collect, manage, and report on EVMS data.

4.5. Integration of EVMS with Acquisition Processes

The agency EVM policy should provide details regarding agency procedures to include EVMS
requirements in contracts and agency in- house Project Charters. Per OMB Memorandums M-04-
24 and M-05-23, agencies are required to include a provision and clause in major acquisition
contracts and/or project charters (for in- house projects) directing the use of an EVMS compliant
with the guidelines in ANSI/EIA Standard 748 to ensure the earned value data and analysis used
to measure and report work progress on these investments are produced by an EVMS that meets
the guidelines in ANSI/EIA Standard 748. The agency EVM policy should include sample
contract language, project charter language, key points of contact in the acquisition office, and
review processes to ensure compliance. For additional information, please refer to Appendix B
(proposed Federal Acquisition Regulation modifications on EVMS).

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5. Stakeholders/Roles and Responsibilities

The agency EVM policy should provide roles/responsibilities for all stakeholders involving in
the implementation and use of EVM. Stakeholders should include government and non-
government (e.g., contractors). Potential stakeholders include: Office of the Chief Information
Officer, Office of the chief Financial Officer, IT Investment Review Boards, Project Managers,
Procurement officials, etc.

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6. Glossary
The agency EVM policy should contain a glossary of common EVMS terminology to ensure a
common understanding.

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7. Appendix A: ANSI/EIA 748 Guidelines

The following is from the American National Standards Institute/Electronic Industries Alliance
Standard 748-98, Earned Value Management Standards, May 1998.
Organization
1. Define the authorized work elements for the program. A work breakdown structure (WBS),
tailored for effective internal management control, is commonly used in this process.
2. Identify the program organizational structure including the major subcontractors
responsible for accomplishing the authorized work, and define the organizational elements
in which work will be planned and controlled.
3. Provide for the integration of the company's planning, scheduling, budgeting, work
authorization and cost accumulation processes with each other, and as appropriate, the
program work breakdown structure and the program organizational structure.
4. Identify the company organization or function responsible for controlling overhead
(indirect costs).
5. Provide for integration of the program work breakdown structure and the program
organizational structure in a manner that permits cost and schedule performance
measurement by elements of either or both structures as needed.

Planning, Scheduling and Budgeting

6. Schedule the authorized work in a manner which describes the sequence of work and
identifies significant task interdependencies required to meet the requirements of the
program.
7. Identify physical products, milestones, technical performance goals, or other indicators that
will be used to measure progress.
8. Establish and maintain a time-phased budget baseline, at the control account level, against
which program performance can be measured. Initial budgets established for performance
measurement will be based on either internal management goals or the external customer
negotiated target cost including estimates for authorized but undefinitized work. Budget
for far-term efforts may be held in higher level accounts until an appropriate time for
allocation at the control account level. On government contracts, if an over target baseline
is used for performance measurement reporting purposes; prior notification must be
provided to the customer.
9. Establish budgets for authorized work with identification of significant cost elements
(labor, material, etc.) as needed for internal management and for control of subcontractors.
10. To the extent it is practicable to identify the authorized work in discrete work packages,
establish budgets for this work in terms of dollars, hours, or other measurable units. Where
the entire control account is not subdivided into work packages, identify the far term effort
in larger planning packages for budget and scheduling purposes.

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11. Provide that the sum of all work package budgets plus planning package budgets within a
control account equals the control account budget.
12. Identify and control level of effort activity by time-phased budgets established for this
purpose. Only that effort which is unmeasurable or for which measurement is impractical
may be classified as level of effort.
13. Establish overhead budgets for each significant organizational component of the company
for expenses which will become indirect costs. Reflect in the program budgets, at the
appropriate level, the amounts in overhead pools that are planned to be allocated to the
program as indirect costs.
14. Identify management reserves and undistributed budget.
15. Provide that the program target cost goal is reconciled with the sum of all internal program
budgets and management reserves.

Accounting Considerations
16. Record direct costs in a manner consistent with the budgets in a formal system controlled
by the general books of account.
17. When a work breakdown structure is used, summarize direct costs from control accounts
into the work breakdown structure without allocation of a single control account to two or
more work breakdown structure elements.
18. Summarize direct costs from the control accounts into the contractor's organizational
elements without allocation of a single control account to two or more organizational
elements.
19. Record all indirect costs which will be allocated to the contract.
20. Identify unit costs, equivalent units costs, or lot costs when needed.
21. For EVMS, the material accounting system will provide for:
Ÿ Accurate cost accumulation and assignment of costs to control accounts in a manner
consistent with the budgets using recognized, acceptable, costing techniques.
Ÿ Cost performance measurement at the point in time most suitable for the category of
material involved, but no earlier than the time of progress payments or actual receipt
of material.
Ÿ Full accountability of all material purchased for the program including the residual
inventory.

Analysis and Management Reports

22. At least on a monthly basis, generate the following information at the control account and
other levels as necessary for management control using actual cost data from, or
reconcilable with, the accounting system:

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Ÿ Comparison of the amount of planned budget and the amount of budget earned for
work accomplished. This comparison provides the schedule variance.
Ÿ Comparison of the amount of the budget earned the actual (applied where
appropriate) direct costs for the same work. This comparison provides the cost
variance.

23. Identify, at least monthly, the significant differences between both planned and actual
schedule performance and planned and actual cost performance, and provide the reasons
for the variances in the detail needed by program management.
24. Identify budgeted and applied (or actual) indirect costs at the level and frequency needed
by management for effective control, along with the reasons for any significant variances.
25. Summarize the data elements and associated variances through the program organization
and/or work breakdown structure to support management needs and any customer reporting
specified in the contract.
26. Implement managerial actions taken as the result of earned value information.
27. Develop revised estimates of cost at completion based on performance to date, commitment
values for material, and estimates of future conditions. Compare this information with the
performance measurement baseline to identify variances at completion important to
company management and any applicable customer reporting requirements including
statements of funding requirements.

Revisions and Data Maintenance

28. Incorporate authorized changes in a timely manner, recording the effects of such changes in
budgets and schedules. In the directed effort prior to negotiation of a change, base such
revisions on the amount estimated and budgeted to the program organizations.
29. Reconcile current budgets to prior budgets in terms of changes to the authorized work and
internal replanning in the detail needed by management for effective control.
30. Control retroactive changes to records pertaining to work performed that would change
previously reported amounts for actual costs, earned value, or budgets. Adjustments should
be made only for correction of errors, routine accounting adjustments, effects of customer
or management directed changes, or to improve the baseline integrity and accuracy of
performance measurement data.
31. Prevent revisions to the program budget except for authorized changes.
32. Document changes to the performance measurement baseline.

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8. Appendix B: FAR Modifications on EVMS

The following is from FAR Case 2004-019, Federal Acquisition Regulation Earned Value
Management System (EVMS), Federal Register, Volume 70, Number 67, April 8, 2005.
34.X03 Solicitation provisions and contract clause.
(a) The contracting officer shall insert a provision that is substantially the same as the provision
at 52.234-X1, Notice of Earned Value Management System, in solicitations for contracts that
require the contractor to use an earned value management system (EVMS) and for which the
Government may require an Integrated Baseline Review (IBR) after contract award. When an
offeror is required to provide an EVMS plan as part of its proposal, the contracting officer
shall forward a copy of the plan to the cognizant Administrative Contracting Officer (ACO)
or responsible Federal department or agency and obtain their assistance in determining the
adequacy of the proposed EVMS plan.
(b) The contracting officer shall insert a provision that is substantially the same as the provision
at 52.234-X2, Notice of Earned Value Management System-Pre-Award IBR, in solicitations
for contracts that require the contractor to use an EVMS and for which the Government will
require an IBR prior to contract award. When an offeror is required to provide an EVMS plan
as part of its proposal, the contracting officer shall forward a copy of the plan to the
cognizant ACO or responsible Federal department or agency and obtain their assistance in
determining the adequacy of the proposed EVMS plan.
(c) The contracting officer shall insert a clause that is substantially the same as the clause at
52.234-X3, Earned Value Management System, in solicitations and contracts that require a
contractor to use an earned value management system (EVMS).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
8. Add sections 52.234-X1, 52.234-X2, and 52.234-X3 to read as follows:
52.234-X1 Notice of Earned Value Management System.
As prescribed in 34.X03(a) use the following provision:
Notice of Earned Value Management System (Date)
(a) The offeror shall provide documentation that the cognizant Administrative Contracting
Officer (ACO) or a Federal department or agency has recognized that the proposed earned value
management system (EVMS) complies with the EVMS guidelines in ANSI/EIA Standard-748
(current version at time of solicitation).
(b) If the offeror proposes to use a system that does not meet the requirements of paragraph (a) of
this provision, the offeror shall submit a comprehensive plan for compliance with the EVMS
guidelines.
(1) The plan shall--
(i) Describe the EVMS the offeror intends to use in performance of the contracts;
(ii) Distinguish between the offeror's existing management system and modifications proposed
to meet the guidelines;

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(iii) Describe the mana gement system and its application in terms of the EVMS guidelines;
(iv) Describe the proposed procedure for administration of the guidelines, as applied to
subcontractors; and
(v) Provide documentation describing the process and results of any third-party or self-
evaluation of the system's compliance with the EVMS guidelines.
(2) The offeror shall provide information and assistance as required by the Contracting Officer
to support review of the plan.
(3) The Government will review the offeror's plan for EVMS before contract award.
(c) Offerors shall identify the major subcontractors, or major subcontracted effort if major
subcontractors have not been selected, planned for application of the guidelines. The prime
Contractor and the Government shall agree to subcontractors selected for application of the
EVMS guidelines.
(End of provision)

52.234-X2 Notice of Earned Value Management System--Pre-Award IBR.

As prescribed in 34.X03(b), use the following provision:
Notice of Earned Value Management System, Pre-Award IBR (Date)

(a) The offeror shall provide documentation that the cognizant Administrative Contracting
Officer (ACO) or a Federal department or agency has recognized that the proposed earned value
management system (EVMS) complies with the EVMS guidelines in ANSI/EIA Standard-748
(current version at time of solicitation).
(b) If the offeror proposes to use a system that does not meet the requirements of paragraph (a) of
this provision, the offeror shall submit a comprehensive plan for compliance with the EVMS
guidelines.
(1) The plan shall--
(i) Describe the EVMS the offeror intends to use in performance of the contracts;
(ii) Distinguish between the offeror's existing management system and modifications proposed
to meet the guidelines;
(iii) Describe the management system and its application in terms of the EVMS guidelines;
(iv) Describe the proposed procedure for administration of the guidelines, as applied to
subcontractors; and
(v) Provide documentation describing the process and results of any third-party or self-
evaluation of the system's compliance with the EVMS guidelines.
(2) The offeror shall provide information and assistance as required by the Contracting Officer
to support review of the plan.

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(3) The Government will review and approve the offeror's plan for EVMS before contract
award.
(c) Offerors shall identify the major subcontractors, or major subcontracted effort if major
subcontractors have not been selected subject to the guidelines. The prime Contractor and the
Government shall agree to subcontractors selected for application of the EVMS guidelines.
(d) The Government will conduct an Integrated Baseline Review (IBR), as designated by the
agency, prior to contract award. The objective of the IBR is for the Government and the
Contractor to jointly assess technical areas, such as the Contractor's planning, to ensure complete
coverage of the contract requirements, logical scheduling of the work activities, adequate
resources, methodologies for earned value (budgeted cost for work performed (BCWP)), and
identification of inherent risks.
(End of provision)

52.234-X3 Earned Value Management System.

As prescribed in 34.X03(c), insert the following clause:
Earned Value Management System (Date)
(a) In the performance of this contract the Contractor shall use an earned value management
system (EVMS) to manage the contract that at the time of contract award has been recognized by
the cognizant Administrative Contracting Officer (ACO) or a Federal department or agency as
compliant with the guidelines in ANSI/EIA Standard-748 (current version at time of award) and
the Contractor will submit reports in accordance with the requirements of this contract.
(b) If, at the time of award, the Contractor's EVMS has not been recognized by the cognizant
ACO or a Federal department or agency as complying with EVMS guidelines (or the Contractor
does not have an existing cost/schedule control system that is

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compliant with the guidelines in ANSI/EIA Standard-748 (current version at time of award)), the
Contractor shall apply the system to the contract and shall be prepared to demonstrate to the
ACO that the EVMS complies with the EVMS guidelines referenced in paragraph
(a) of this clause.
(c) Agencies may conduct Integrated Baseline Reviews (IBR). If a pre-award IBR has not been
conducted, such a review shall be scheduled as early as practicable after contract award, but not
later than 180 days after award. The Contracting Officer may also require an IBR at (1) exercise
of significant options or (2) incorporation of major modifications. Such reviews will normally be
scheduled before award of the contract action.
(d) Unless a waiver is granted by the ACO or Federal department or agency, Contractor proposed
EVMS changes require approval of the ACO or Federal department or agency, prior to
implementation. The ACO or Federal department or agency, shall advise the Contractor of the
acceptability of such changes within 30 calendar days after receipt of the notice of proposed

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changes from the Contractor. If the advance approval requirements are waived by the ACO or
Federal department or agency, the Contractor shall disclose EVMS changes to the ACO or
Federal department or agency at least 14 calendar days prior to the effective date of
implementation.
(e) The Contractor agrees to provide access to all pertinent records and data requested by the
Contracting Officer or a duly authorized representative. Access is to permit Government
surveillance to ensure that the EVMS conforms, and continues to conform, with the performance
criteria referenced in paragraph (a) of this clause.
(f) The Contractor shall require the subcontractors specified below to comply with the
requirements of this clause: [Insert list of applicable subcontractors.]
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(End of clause)

[FR Doc. 05-6864 Filed 4-7-05; 8:45 am]

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